Neovia sees earnings rise but revenue fall
Neovia Financial's half-year results were released today, which showed an increase in EBITDA but a decrease in total revenue.
Neovia Financial saw earnings rise 25% but total revenue fall 6% for the first half of this year, which chief executive Mark Mayhew blamed on “difficult market conditions”.
In the half-year results which were released today, the payments business announced that earnings before interest, tax, depreciation and amortisation (EBITDA) were up 25% year-on-year (YoY) to US$6.1m, from US$4.9m in the first half of 2009. However, total revenues were down 6% to US$30.8m, from US$32.6m.
The core stored value business, which encompasses the NETELLER e-wallet and Net+ products, saw revenues go up 5% to US$23.3m.
Mayhew said: “The trading results reflect the success of our business transformation programme to control costs but also the continuing difficult market conditions which impacted clients in our core e-gaming vertical as the half unfolded.”
Neovia saw EBITDA halve in 2009 and revenue drop 15% year-on-year, which the company attributed to the recession. EBITDA was US$8m in 2009, down from US$16m the previous year, with group total revenue totalling US$64.5m, down from US$75.9m in 2008.
In today’s statement, Mayhew blamed the World Cup for depressing some sectors of the egaming market, but said that “revenues in our stored value businesses held up well in the first half, despite these difficult conditions and a lack of new products resulting from the delayed launch of our Newteller platform.”
Mayhew said he expected to see the revenue benefits from new products running off the platform in 2011.